Salesforce forecasts second-quarter revenue below estimates

By Thomson Reuters May 29, 2024 | 3:10 PM

(Reuters) – Salesforce forecast second-quarter revenue below Wall Street expectations on Wednesday, on weak client spending on its cloud and enterprise business products in an uncertain economy, sending its shares down 9% in extended trading.

The company forecast revenue between $9.20 billion and $9.25 billion compared with estimates of $9.37 billion, according to LSEG data.

Salesforce’s forecast indicates that clients are scaling back spending as the possibility of higher-for-longer interest rates and elevated inflation prompt them to keep a tight leash on costs.

For the first quarter, the company reported revenue of $9.13 billion, missing the analysts’ average estimate of $9.18 billion.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Arun Koyyur)